Calls to block Frontier – Spirit Airlines merger
Lawmakers and consumer groups called on regulators to block the planned merger proposed by budget airlines Frontier and Spirit Airlines.
They say it will create the fifth-largest US airline and further erode competition.
Public Citizen, Fight for the Future, the American Economic Liberties Project and other groups wrote to the Transportation and Justice Departments saying the merger ‘would destroy competition in the only competitive market segment of the highly consolidated airline industry.’
“Travelers will pay higher prices for fewer and lower quality options, workers will lose their jobs, and smaller firms will be muscled out.”
Additionally, lawmakers including Senators Elizabeth Warren, and Bernie Sanders wrote to regulators about similar concerns.
“A Spirit-Frontier carrier could hurt consumers in numerous ways, consolidating market power for the airlines and reducing choices for travelers,” they wrote.
The Transportation Department said it would respond to the concerns.
The proposed merger would result in a new $6 billion business able to compete with the much larger legacy carriers.
Colorado Attorney General Phil Weiser wants to see it blocked but for a different reason.
He said the airlines’ customer service is substandard and could get worse for customers if they merged.
“The prospect of this merger creates an immediate need for the USDOT to examine Frontier’s business practices to ensure both airlines have policies in place that comply with laws requiring carriers treat consumers fairly and honestly,” Weiser said.
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